Thursday, July 11, 2019

Trump the Red Chinese

The newspaper said, "China’s inflation figures revealed two separate headaches for Beijing on Wednesday, with consumer prices continuing to rise, while the prices producers charged at factory gates in June threatened to dip into deflation.

"The consumer price index (CPI) stayed at 2.7 per cent, the same as in May, which was the highest reading for 15 months. This indicates that prices are continuing to rise for Chinese consumers at a time when the economy is battling serious headwinds on a number of different fronts.

"Meanwhile, the producer price index (PPI), the price charged to buyers from producers at the factory gates, is teetering on the brink of deflation, reporting at 0.0 per cent in June year on year, down from 0.6 per cent in May and below a Bloomberg poll, the median forecast of which was 0.1 per cent.

"Domestic consumption has been a concern of policymakers in Beijing for some time, and the fact that prices are rising, it will add to this anxiety since it makes it more difficult for consumers to buy more."

"Where past presidents engaged Beijing in good faith on issues like improving its human rights record or its conduct in cyberspace, Trump has preferred to treat the country as a strategic competitor that requires a more aggressive response by the United States."

But Vox said, three months into President Trump taking China on, Vox declared it a disaster. It cited Ryan Hass, Obama's man on China in his second term.

He said, "The administration diagnosed the right problem, but it came up with the wrong remedy."

I believe he meant Trump's but he described Obama's.

President Trump -- unlike his failed predecessor -- knows how to negotiate. Donald Trump offers the carrot-and-the-stick approach to negotiations, and occasionally he uses the carrot as a stick.

His strategy to deal with Red China was to fix the American economy. He did. Manufacturing is back to 2001 levels. Unemployment is at a 50-year low of 3.7%. Stocks are at record highs.

For decades, Red China used North Korea to cow presidents into compliance. President Trump removed that negotiating tool.

Then he slapped on tariffs. Then he took on Huawei.

At the G-20 summit, Red China agreed to go back to the bargaining table. We are making progress.

Today, Victoria Song reported, "It’s been a rough few months for Huawei, but as of now, it looks like there might be some relief for the Chinese tech giant at the center of recent U.S.–China trade tensions. In a speech in Washington, DC, on Tuesday, U.S. Commerce Secretary Wilbur Ross clarified that while Huawei will remain on the Entity List, his department will issue trade licenses for companies provided 'there is no threat to U.S. national security.'"

Ross knows Donald Trump plays hardball. During his bankruptcy proceedings in the early 1990s, the future president talked Ross and the banks into dropping their interest rates and letting him keep most of his empire.

Gordon Chang reported this years ago that China is a house of cards-they believe their own cooked books like the owner of a commuter Airline I worked for years ago. he had his misstre..er. book keeper cook the books for a buyer. Looking at the books, hesaid"I'd be nuts to sell! deal's off!"Those buyers formed what became Horizon Airlines which now are part of Alaska's system.. NBADJT..

Deng told the Chinese to hide their intentions until they were rich and powerful enough to have their way. They moved too soon and awakened the slumbering Americans. The South China Sea seizure was a foolish gambit that they will come to rue.China has united the entire region against them and driven everyone into the American embrace. The Circle from India through Australia to Japan is richer, more populous, and is arming rapidly. Meanwhile, China is installing a tech tyranny that will crush the creativity of China's people in a weird dystopian Sino-Marxist Brave New World.

There are still questions about India, Vietnam and the Philippines. Vietnam simply tolerates us, and they still have plenty of Karma piled up from 1975. Duterte will have to swallow his pride and deal with the trash talk he directed our way before he can come back to the table. I doubt that will happen in the remainder of his term.

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